ASM Pacific Technology Reports Robust Nine-Month & Third Quarter 2021 Results
Record Bookings, Revenue and Net Profit for 9M 2021
Bode Well for Full Year 2021 Performance
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Group Performance at a Glance
1 excluding contribution from Materials Segment, which was deconsolidated and equity accounted since 29 December 2020
2 including share of results from Advanced Assembly Materials International Limited (AAMI), a joint-venture, commencing from the beginning of 2021
Highlights for Q3 2021
(Note * : compared with historical quarterly net profits, and excluding Q1 2011 and Q4 2020 one-off items)
Highlights for 9M 2021
(Note ^ : compared with historical 9M net profits and earnings per share, and excluding 2011 and 2017 one-off items)
Revenue Guidance for Q4 2021
Full earnings details at https://www.asmpt.com/investors/announcements-circulars/
(Hong Kong, 27 October 2021) – ASM Pacific Technology Limited (“ASMPT” / the “Group”) (Stock code: 0522), a leading global provider of hardware and software solutions for the manufacture of semiconductors and electronics, announced a robust set of results, with record bookings, revenues and net profits for the first nine months, placing the Group in a good position for full-year 2021 performance, with foundations in place for sustained growth.
Group 9M 2021 Highlights
Supply Chain Excellence
Buffeted by COVID-induced constraints, industry-wide semiconductor shortages, and both supply chain and logistical bottlenecks, ASMPT was able to execute on its commitments well, with record 9M revenue and bookings, and sharp gross margin improvements, all while managing an elevated order backlog. The Group balanced highly flexible global capacity allocation capabilities with maintaining strategic inventory levels augmented by spot purchases where necessary. These helped the Group to deliver at record levels.
AP and Automotive Momentum
The Group’s comprehensive Advanced Packaging (“AP”) solutions enable the Group to support a whole range of customer needs, including 2.5D, 3D-IC, fan-in and fan-out wafer-level packaging and system-in-package (“SiP”) tools. During this period, a broad customer base made strong capital investments in the Group’s AP tools across both its SEMI and SMT segments, including Tier-1 high density interconnect substrate manufacturers; advanced logic integrated device manufacturers; outsourced semiconductor assembly and test (“OSAT”); along with fabless and foundry companies. Key to this shift is the rising demand for more cost-effective solutions to support high performance computing needs in this growing data-centric era.
There was also strong demand from automotive customers from both conventional and electric vehicle markets, tapping the Group’s broad product portfolio, including its unique automotive solutions. In September, the Group also signed an agreement to acquire Mycronic Group’s subsidiary, Automation Engineering, Inc. (‘AEi’), the de facto leader in automotive camera active alignment1. The acquisition, which is subject to customary closing conditions and regulatory approvals, will provide the Group a significant presence in the automotive camera assembly and test solutions space and open doors to new adjacent market opportunities in security surveillance, drones and LIDAR.
The Group delivered record 9M revenue of HK$15.75 billion (US$2.03 billion), with record 9M Group bookings contributing to a substantial backlog of HK$11.01 billion (US$1.41 billion) (as of 30 September 2021) and a book-to-bill ratio of 1.33. Sharp YoY gross margin improvement of 362 bps also drove Group net profit (including share of results from its joint-venture AAMI) to a record^ HK$2.26 billion, a 333.9% YoY improvement. The Group also held cash and bank deposits of HK$4.49 billion (as of 30 September 2021).
Note ^ : compared with historical 9M net profits, and excluding 2011 and 2017 one-off items
Q3 2021 Highlights
The Group registered a record Q3 2021 revenue (HK$6.23 billion / US$801.8 million), representing YoY improvement of 70.1%. Group bookings of HK$5.72 billion (US$735.3 million), remained elevated relative to historical third quarter levels. Group gross margin of 40.6% represented a sharp YoY improvement of 543 bps and flat QoQ. Net profit (including share of results from its joint-venture AAMI) was HK$1.00 billion, a 480.6% increase YoY.
Semiconductor Solutions Segment
This Segment achieved strong Q3 2021 revenue (HK$3.55 billion / US$456.4 million). Mainstream wire bonders and die bonders dominated bookings, with advanced placement flip-chip tools showing strong YoY and QoQ bookings growth. Segment gross margin was 43.6% this quarter, a YoY improvement of 359 bps and slight decline of 27 bps QoQ. Segment profit was HK$799.1 million, a 349.1% improvement YoY.
SMT Solutions Segment
This Segment reported a strong Q3 2021 revenue performance (HK$2.69 billion / US$345.4 million) and strong bookings (HK$2.17 billion / US$279.2 million), up 22.4% YoY. Notably, automotive and industrial applications continued to register strong momentum. Segment gross margin of 36.6% was a sharp improvement of 675 bps YoY and 116 bps QoQ. Segment profits improved to HK$572.0 million, a 233.1% YoY increase.
Q3 2021 Highlights
Supported by a strong backlog, the Group expects Q4 2021 revenue to be between US$720 million to US$770 million. Based on the mid-point of this guidance, the Group estimates its full year 2021 revenue to be around US$2.8 billion, representing approximately +46% YoY, which will be a new Group record.
“In the face of a more volatile, uncertain, complex and ambiguous world, ASMPT has been able to continue growing and to become more innovative and efficient,” commented Mr. Robin Ng, Group CEO. “Riding a ‘triple confluence’ of positive industry tailwinds, our unique broad-based product portfolio and a gradually improving macroeconomic environment, our disciplined implementation of a set of key strategic initiatives continues to gather pace and will support ASMPT’s consistent and sustainable long-term performance.”
About ASM Pacific Technology Limited (“ASMPT”)
ASMPT (HKEX stock code: 0522) is a leading global supplier of hardware and software solutions for the manufacture of semiconductors and electronics. Headquartered in Singapore, ASMPT’s offerings encompass the semiconductor assembly & packaging, and SMT (surface mount technology) industries, ranging from wafer deposition, to the various solutions that organise, assemble and package delicate electronic components into a vast range of end-user devices, which include electronics, mobile communications, computing, automotive, industrial and LED (displays). ASMPT partners with customers very closely, with continuous investment in R&D helping to provide cost-effective, industry-shaping solutions that achieve higher productivity, greater reliability and enhanced quality.
ASMPT is one of the constituent stocks of the Hang Seng TECH Index, Hang Seng Internet & Information Technology Index, Hang Seng Composite MidCap Index under the Hang Seng Composite Size Indexes, the Hang Seng Composite Information Technology Industry Index under Hang Seng Composite Industry Indexes and the Hang Seng HK 35 Index. To learn more about ASMPT, please visit us at www.asmpacific.com.
All statements included herein, other than statements of historical facts, are or may be forward-looking statements. These forward-looking statements reflect ASMPT’s current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not guarantees of future performance or events and involve known or unknown risks and uncertainties. Accordingly, actual results may differ materially from information contained in the forward-looking statements as a result of a number of factors. Readers should not place undue reliance on such forward-looking statements, and ASMPT does not undertake any obligation to update publicly or revise any forward-looking statements. No statement herein is intended to be or may be construed as a profit forecast.
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